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Huawei reportedly "open" to selling its 5G modems to Apple

By Cookie Monster - on 10 Apr 2019, 12:00am

Huawei reportedly "open" to selling its 5G modems to Apple

Huawei develops its own processors and modems, and always kept them for internal use only. However, the company could be taking a different approach for its 5G modems.

A source with knowledge of the matter told Engadget that Huawei is now "open" to selling its 5G Balong 5000 chipsets, but only to Apple. It is not known if Apple and Huawei have engaged in any conversations.

If a deal eventually comes together, it will benefit both companies. Huawei would create a new revenue stream by getting massive orders of its 5G modems from Apple. The iPhone maker could still launch a 5G iPhone in 2020 without having to wait for Intel modems. The ongoing legal battle with Qualcomm has reportedly forced Apple to approach Samsung and MediaTek to supply 5G modems, but a deal has not been struck with any of the companies. Apple also could not develop its own radio modems in the near time despite allocating more resources and higher priority.

However, it is unlikely that both companies can work together. The U.S and China are currently embroiled in a trade war, and the arrest of Huawei's CFO in Canada at the request of U.S law enforcement authorities has further complicated matters. In addition, U.S authorities have banned the use of Huawei equipment due to purported national security risks.

Source: Engadget